Winslow watches a commercial of Rancid Rabbit advertising his candy the Rancid Bar. Dog and Cat argues each other on what they want for lunch. Cat wants to eat a whitefish chub while Dog wants to eat a moldy beef sandwich. With Winslow observing the conflict the two fought each and knocked down food and mixing them with CatDog's back, creating a strange pink goo. The goo grows and then exploded, ending the fight but the dispute went on. Winslow came to CatDog and found out that they smell good with the pink substance around them. Winslow took a sample from Dog's nose and found it delicious to eat. He claims it to be the best food ever tasted, so Dog and Cat samples and agree that it is considered to be a delicious candy. Winslow tells CatDog to make more and then sell them. CatDog figured out by fighting around food materials like they did before, they can make more. They found it tiring to make the candy but when Dog desired a "candy-making fighting machine", Cat has an idea that they should build one.

Cat and Dog changed their house with candy cane colors and added a banner promoting their candy. They hired Mervis and Dunglap as employees of the candy factory by making them create more candy. Dog introduced them to the candy-making fighting machine and used them in the machine. In the process, Mervis and Dunglap were tossed around and hit each other while mixing ingredients splattering together. The finished product is sent to be packaged and Mr. Sunshine transports the candy around the world. The candy becomes so successful that it made Rancid jealous that no one buys his candy anymore. He hires the Greaser Dogs to steal the formula of CatDog's candy in desperation to become successful again.

A crowd of people visits CatDog's house as the factory became a popular tourist attraction, with Winslow introducing guests. The Greaser Dogs arrive in disguise and managed to bypass Winslow and enter the house. They took a picture of the candy processing and showed it to Rancid. Rancid used the Greasers to replicate the same method of making the CatDog candy in his own machine. With this strategy based on the CatDog's Candy production, Rancid makes a new candy known as "Rockin' Rancid Candy". After the candy is finished Rancid took a sample from his candy and the candy tasted bad. He then plans to destroy CatDog's house.

The scene shifts to Cat holding his income from the success of his candy. From a distance Dog and Cat sees a tank-like vehicle, with Rancid and the greasers inside. Rancid declares war on them but Dog replies that they will fight. The tank charges forward towards the house while Dog launches a butterscotch jar from the oven to the tank. Having no effect, Mervis and Duglap launched marshmallows at the tank but it used mixers to grind the marshmallows. Dog and Cat used a flour at the tank which hits but the tank is again unaffected. Cat plans to use the last resort, the "nuclear nougat" against the tank. Using a radiated whitefish chub and moldy beef sandshich to the candy, it created a nuclear-like explosion inside CatDog's house, unleashing shock waves to the tank and splattering candy to the tank, disabling it. For the finishing move, Cat eats chocolate milk balls shoots projectiles from Dog's nose against the tank. Shriek plans to escape, Cliff, Lube, and Rancid follows the same thing. Cat and Dog win against Rancid and the Greasers.

However, turns out that the candy has a big setback. It is revealed that it makes people bald. CatDog watched television and saw Lola in the news blaming CatDog Candy for making people bald. Cat and Dog also found themselves bald. A group of angry customers went inside CatDog's house and tied them into the chairs from the candy-making machine. Cat said that all the incident would be avoided if he didn't want whitefish chub, The machine took CatDog and they went inside the packaging of the candy. Winslow ate a sample from the candy and calls it "the best batch ever".